Canada Pension Boost Confirmed – Expected Increases for CPP, GIS, and OAS Pensions in August 2024

The Canadian government offers several programs to address retirees’ primary concerns: health and pensions. Payments under the Old Age Security (OAS) and Canada Pension Plan (CPP) are indexed annually to account for inflation and cost of living increases.

Starting January 2024, there will be a 4.8% rise in pensions. This adjustment applies to all pensioners, survivor pensions, and the deferred pensions of former and divested members. Every January, Statistics Canada reports the Consumer Price Index (CPI), which measures the rise in the cost of living and is used to calculate pensions.

Pension Boost Canada ensures that your pension does not lose value over time and shields it from inflation’s effects. This article provides detailed information about the upcoming increase in CPP and OAS pension amounts.

CPP Increase

Many changes are being made to the CPP pension, effective next year, impacting both employed Canadians and pensioners. From 2023 to 2024, CPP benefits increased by 4.4%. This rise is notably higher than in previous years due to significant inflation over the past 12 months.

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In 2024, the maximum monthly CPP payout will be $1,364.60, up from $1,306.57 in 2023, reflecting the 4.4% increase in CPI rates. The average monthly CPP payout will be $758.32. Canadians still employed will see the impact of the income cap increase from $66,000 to $68,500.

A “second additional CPP contribution,” or CPP2, is also being introduced by the government. It is set above the highest pensionable income threshold. For retirees, the benefit would be rather minimal.

OAS Increase

OAS benefits have increased by 0.80% for the quarter ending in January–July 2024. Unlike CPP, OAS payments are adjusted quarterly for cost of living increases in January, April, July, and October. The current 2024 increase in OAS is based on CPI data for two periods of three months each.

The 0.8% increase in the CPI results in maximum monthly OAS payments for January through July 2024 being $713.34 (for those 65 to 74 years old) and $784.67 (for those 75 years and above). Benefits automatically increased by 10% for seniors 75 years of age or older as of July 2022. This increase will continue until 2024. Seniors over 65 currently receive a maximum monthly OAS payout of $784.67, which is 9% more than the amount received by those between 65 and 74, who receive $713.34.

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The OAS and CPP pensions are crucial parts of older Canadians’ retirement income, providing financial support and ensuring a fair distribution based on individual income levels and inflation adjustments.

Pension Boost Canada financing aims to reduce financial pressures on seniors, allowing them to maintain their lifestyle. It’s advisable to start planning before reaching retirement age, as cash retirement savings can only partially bridge the gap between pension and expenses, and they are also susceptible to inflation.

Thank you for taking the time to read about Pension Boost Canada.

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